Capital Intensive Enterprises
29 - |
Which of the following is used to describe businesses that operate mainly based on facilities and equipment (equipment) factors ? |
|
Capital intensive enterprise or business is a type of organization that uses a large number of capital-intensive machinery in order to produce goods and products. These enterprises require a lot of funds in order to do the production. Capital intensive enterprises possess a lot of fixed assets including machinery, plant, and infrastructure. Some of the examples of capital-intensive organizations can be Oil extraction refineries, Automobile industries, etc. Telecommunication and transportation industries can also be considered capital-intensive industries. Capital intensive methods help the employees of the organization to improve their level of productivity. Only skilled workers should be appointed in a capital-intensive method of production. As these employees would be able to do the production work in a professional way. Capital intensive methods of production help in the mass production of goods.
Step by step
Solved in 2 steps
